Real estate terms can send your head spinning, but there are some terms that could save you and your real estate deal in the long run. Let’s take a look at some of these terms.
Fixed Rate versus Adjustable Rate Mortgages
Conventional mortgages fall into two very different categories: fixed rate and adjustable rate. A fixed rate mortgage has a predetermined interest rate through the life of the mortgage. It commonly lasts for 20 to 30 years depending on your preference. An adjusted rate mortgage has a variable interest rate that commonly lasts from five to 10 years.
Mortgage Pre-Approvals Letters
Before you apply for the actual mortgage, you should get a pre-approval letter from a bank or reputable lender. This letter will estimate how much money they will lend you. This letter will help to determine how much home you can afford and assure home seller that you are serious about buying a home.
After you have made an offer on a home, it is time to get an inspection. Inspections usually cost around $500 to $800 depending on the market. The inspector will go through the home and review things like the plumbing, electrical, foundation, appliances, heating, and walls to make sure the home is safe and free of problems.
When you apply for a mortgage, your lender will require an appraisal for the home. A licensed appraiser will estimate the home’s value based on comparable homes and an investigation of the property.
When you put in an offer on a home, you can specify certain conditions that must be met before the deal goes through. These conditions are often financing pulling through, a good inspection, and a good appraisal.
After all, of the negotiations are finished and the offer has been accepted, you will receive a home title report within a week. Most lenders require you to pay title insurance as a part of closing costs. The insurer will search public records to ensure the home seller has the rights to the title and there are no liens on the home like unpaid taxes or contractors.
There are a lot of ins and outs to buying a home but with the right agent, your home search will turn out great. For more information on buying a home, call Simply Referable!
Real Estate Terms with Simply Referable!
The small team of realtors at Simply Referable is deeply focused on creating a memorable selling experience for you and your family. Each of our team members has an area of expertise, and we strive to form lasting bonds with each of our clients. We want to be your go-to realtors every time you or a friend wants to make a change. With local experience, our realtors can help you choose a house that is just the right fit for your family, now and forever. Contact us online or give us a call at 410-983-9045.